WASHINGTON – Proposals to extend the new tax law by adding incentives to savings and start-up companies have been passed by the House, with Republicans advancing legislation ahead of the mid-term elections.

The votes on Thursday were 240-177 and 260-156, mainly along the party lines, to approve a pair of measures written by the Republicans. The action was a prelude to a vote scheduled on Friday over broader legislation aimed at making permanent the individual tax cuts that are now expected to expire in 2026 under tax law.

House Republican leaders describe the second problem of tax cuts as defending the middle class and small businesses. The outlook for legislation is unclear in the Senate.

One of the measures would create a "universal savings account" for families that can be used for a variety of purposes.

The Democrats unanimously opposed the $ 1.5 trillion tax law passed in December by President Donald Trump, and they also oppose the new legislation.

With the midterm elections taking place in less than two months, polls showed only moderate voter support for the tax package for individuals and businesses, which became Trump's legislative achievement. House Republican leaders describe the second problem of tax cuts as defending the middle class and small businesses.

But support for legislation has been reduced by the electoral pressures faced by GOP legislators in high-tax states, where residents are harmed by the tax-imposed limits on state and local tax deductions. A dozen members of the House of Republicans, facing tough reelection struggles in high-tax states, the democratic states of New York, New Jersey and California, voted against their party's tax law and are likely to opposed to the new legislation. GOP lawmakers are pushing to retain their seats in the relatively affluent suburbs where Trump is unpopular. Residents of these states could see their federal tax bills increase substantially next spring due to the $ 10,000 cap on state and local deductions in tax legislation.

The law that will be voted on Friday would make the ceiling permanent.

One of the measures approved by the House on Thursday would create a "universal savings account" for families, which could be used for a variety of purposes and would make it easier to remove the non-taxable income that it does not have. is the case with existing retirement accounts. In addition, the popular tax-free education accounts, 529, would also pay for learning expenses and home schooling fees, as well as pay off student debt . Workers could use their retirement savings accounts without penalty tax to cover expenses related to the birth of a child or an adoption.

A second measure would allow start-ups to write off a larger portion of their initial federal tax costs. New businesses would be allowed to deduct more of their expenses for implementation in the first year – up to $ 20,000, double the current maximum level.

The proposal "will allow more businesses to move from their kitchen table to their first office," said Rep. Kevin Brady, R-Texas, Chair of the Ways and Means Committee of the Tax Writing House.

Democrats said that there were positive elements in the legislation, but that overall, they would not improve the situation of average Americans. "Probably not your family," said representative Lloyd Doggett, D-Texas, referring to the proposed new savings accounts. "It's about helping those who are at the top."

The accounts would mainly benefit wealthy taxpayers, with about $ 100,000 in annual revenues needed to make the most of them, Doggett said. He said that people with lower incomes would probably end up shifting savings from other types of accounts to the new one.

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